PREFILED    DEC 08 2016

REFERENCE TITLE: home‑based business; operations; employees




State of Arizona


Fifty-third Legislature

First Regular Session




SB 1007


Introduced by

Senators Farnsworth D: Barto, Borrelli, Fann, Farley; Representatives Bowers, Boyer, Coleman, Leach, Mosley, Nutt, Powers Hannley, Townsend, Udall





Amending section 11‑820, Arizona Revised Statutes; relating to home‑based businesses.





Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 11-820, Arizona Revised Statutes, is amended to read:

START_STATUTE11-820.  Restriction on regulation; home-based businesses; exception; definitions

A.  Any ordinance authorized by this chapter shall not restrict or otherwise regulate the owner of a home-based business that holds a valid license from:

1.  Making residential property improvements to add doors, shelving or display racks for use by the home-based business.

2.  Displaying a temporary commercial sign on the residential property during business hours, if the sign is not more than twenty‑four inches by twenty‑four inches.

3.  Selling or offering for sale any goods.

4.  Generating traffic, parking or delivery activity that does not cause on‑street parking congestion or a substantial increase in traffic through the residential area.

5.  Having more than one client on the property at one time.

6.  Employing any of the following:

(a)  Residents of the primary dwelling.

(b)  Immediate family members.

(c)  One or two individuals who are not residents of the primary dwelling or immediate family members.

B.  This section does not preclude a county from imposing reasonable operating requirements on a home-based business or a residential property used by a home-based business.

C.  For the purposes of this section:

1.  "Goods" means any merchandise, equipment, products, supplies or materials.

2.  "Home-based business" means any business for the limited manufacture, provision or sale of goods or services that is owned and operated by the owner or tenant of the residential property.

3.  "Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild or stepsibling whether related by adoption or blood.

3.  4.  "License" means any permit, certificate, approval, registration, charter or similar form of authorization that is required by law and that is issued by any agency, department, board or commission of this state or of any political subdivision of this state for the purpose of operating a business in this state or to an individual who provides a service to any person and the license is required to perform that service. END_STATUTE